SM Prime 9-mth net income up 12% at P13.5B

Property giant SM Prime Holdings Inc. on Monday said its
to September net income grew 12 percent to P13.5 billion from P8.43 billion last year.

Revenues for the period also rose to P47.8 billion from P24.77 billion last year.

In the third quarter alone, SM Prime boosted its net income by 12 percent to P3.7 billion from P3.3 billion in 2013.

“Our first year as a consolidated property business is proving to be rewarding not only in terms of our strong financial performance,” SM Prime President Hans T. Sy said.

The SM Group consolidated all its property businesses into SM Prime last year.

“We are now enjoying the scale and the synergy that the whole group brings to the table, which allows us to plan and execute our projects in a manner that will provide greater value and more enhanced lifestyles for our customers,” he added.

For the nine months, rental revenues rose 11 percent to P26.4 billion from P23.8 billion a year ago due to expanded retail and commercial space in newly opened and expansion malls, including SM Aura Premier, SM City BF Parañaque, Mega Fashion Hall in SM Megamall, and SM City Cauayan, which have a combined total gross floor area of 527,000 square meters.

Real estate sales climbed to P16 billion from P15.8 billion on units sold in Grace, Shell and Breeze Residences.

Cinema ticket sales jumped 21 percent to P3.3 billion in the first nine months, while amusement and other revenues increased 20 percent to P2.1 billion from P1.8 billion in 2013.

Consolidated costs and expenses went up 5 percent to P27.7 billion from P26.4 billion on an uptick in depreciation expenses on new malls as well as higher film rentals parallel to the growth in cinema sales.

The company said it expects better year-end financial performance on the projects to be completed, as well as the new housing projects lined up for launch over the next 12 months.